DP World wins Djibouti terminal arbitration

DP World wins Djibouti terminal arbitration

The London Court of International Arbitration (LCIA) has ruled that DP World’s concession agreement for the Doraleh Container Terminal is valid and legally binding, and confirmed that the Djiboutian government’s’s action of seizing control of the terminal illegal.

In February, the government of Djibouti illegally seized control of the Doraleh Container Terminal from DP World, who designed, built and operated the terminal after a concession awarded in 2006. The move follows the government’s campaign to force DP World to renegotiate the terms of the concession.

DP World was compelled to commence a new arbitration in February seeking a declaration that the concession agreement was valid and binding on the government.

DP World claimed earlier that the action is yet another clear example by the Djiboutian government of violating its contractual obligations and the rights of foreign investors.

“As a foreign investor that has invested millions of USD in the country, DP World has added greatly to the economy of Djibouti throughout the years,” DP World said.

According to DP World, it has consistently contributed 12% to Djibouti GDP
 and it has grown origin and destination cargo by 380% in the last 14 years.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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